As debt and interest rates rise, the government is about to be in a disastrous situation. Very soon, they will spend more money paying interest on the national debt than they will on the bloated military budget.
By the year 2023, interest payments on the national debt could surpass the entire budget for the Department of Defense, according to the New York Times. The ballooning debt is being spurred by an inability by those who claim authority over the economy to stop spending and the hike in interest rates. With more and more money being robbed from the unborn and spent by the government and more going toward interest, political “leaders” will find it harder to do pretty much anything.
While many are worried about the crumbling infrastructure, others say it’ll be more difficult to make emergency moves like pulling the economy out of future recessions. Which is strange, because the government causes recessions and doesn’t “fix” them, they simply put band-aids on gaping wounds. This mentality that the government will save people when they are $21 trillion in debt is a delusional one, other economic experts have said.
In about 5 years, more than $900 billion in interest payments will be due annually, easily outpacing spending on several other socialist programs. Already the fastest-growing major government expense, the cost of interest is on track to hit $390 billion next year, nearly 50 percent more than in 2017, according to the Congressional Budget Office. The inability of the government to rein in spending will eventually result in an economic meltdown the world had never seen nor is prepared for. The government literally cannot steal enough money from producers in the form of taxes to get out from under this problem anymore.
“It’s very much something to worry about,” said C. Eugene Steuerle, a fellow at the Urban Institute and a co-founder of the Urban-Brookings Tax Policy Center in Washington. “Everything else is getting squeezed.” Gradually rising interest rates would have made borrowing more expensive even without any additional debt, but the government never cuts spending. In fact, Republicans, who are supposed to be “fiscally conservative”, while holding all three houses of government, approved a budget bill in February that raised spending by $300 billion over two years. All of these problems will add to the financial pressure.
The deficit is expected to total nearly $1 trillion next year for the first time since 2012, under the Obama Administration.
Former chairman of the Federal Reserve, Ben Bernanke, has even begun to sound the alarm on the government’s spending problem. At a recent round-table discussion with reporters at the Brookings Institution, Bernanke, former Treasury Secretaries Henry Paulson, and Timothy Geithner all expressed concerns that the next economic crisis will come with policymakers being unable to do anything about it. –SHTFPlan
The trade war will also make things difficult for those already struggling to make ends meet as jobs are lost and prices are raised to cover the cost of tariffs. The economy’s immediate future is looking incredibly bleak.
Usuary (loaning at interest) was made illegal for good reason.
Time to outlaw the practice of loaning at interest??
It is still a sin officially to loan at an exorbitant rate.
This concept is too ambiguous and open to abuse.
Has the can reached the end of the road or will the funny money pave a few more years of road?
More years coming right up.
Millionaire – Math Is Hard. (Oct. 8, 2012)
We reach the end of the road on 3% money? What if rate were “normal” at 6-7%?
Usury originally meant plain and simply interest paid on a loan by the borrower to the lender for use of a Principal (cash or property).
Usury in modern usage has come to mean “excessive” (eye of the beholder?) interest.
Whatever the Church position has been over the centuries, the Bible clearly shows in the O.T. that Hebrews were forbidden to loan at interest to their Brothers.
However, outsiders were fair game for usury/interest.
And there is also language in there about squeezing interest out of the Poor being not good.
Jesus’ Parable of the Talents (Quantity of Silver) has the Master in the story scolding the One Talent Servant for failing to at least put the money in the hands of the bankers so it could earn interest.
So Jesus, Founder of Christianity, gave tacit approval by advocacy in this Parable for at least simple money lending at interest.
I personally think that what we could call First Order Usury is okay morally.
You lend me money or goods for which I have a perceived need for some period of time and I pay you for that valuable service.
All that other stuff (Second Order and Greater Usury) with money creation and fractional reserve lending and derivatives – to me that is scamming for power and control.
It is all built on nothing…
Eventually they’ll have to default on the national debt. There’s literally no way to pay it back. They’ll have no other choice.
“Eventually they’ll have to default on the national debt. There’s literally no way to pay it back. They’ll have no other choice.”
It never gets paid back post August 1971 Bretton Woods abandonment. Money has no intrinsic value. They pay it back by making more of it. Fractional reserve banking creates money as more is loaned then is in reserve to back up the loans. When they default money is destroyed. In the meantime more nations in the third world are industrialized with the net result of the citizenry needing more things from outside of their nation. That transaction largely uses the US dollar thus increasing its demand. Its a brilliant scheme that is entirely dependent upon the US dollar maintaining world reserve currency status. Wars are fought to both expand and maintain this system.
Kevin2, good points you made so I stand corrected. The only question is how much longer can they maintain the status quo? That’s anyone’s guess.
The Deplorable Renegade
“…how much longer can they maintain the status quo?”
Wars are fought to both expand and maintain this system.
I think its all predicated on this or its credible threat coercing nations into compliance. The problem is this use of bully force has essentially replaced economics. Its being done more often and in more places. Its reached a point that nations are putting up resistance. Its greatest manifestation is the role reversal of countries teaming up with Russia and China to get protection FROM the USA. So the answer to the question, “How long can it last”? The empire is cracking as we speak. My concern is WWIII coming out of it.
Kevin2, agreed that the empire is in decline. Not enough plugs to put in all the holes in the dyke. I also think that one last major war to prop up the system and it will be GAME OVER.
“I do not know with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.” -– Albert Einstein.
i been talking about how the interest will kill our economy/dollar for over 12 years. yet nobody SEEMS to hear it……the only question i got is how the HELL we going to go 5 more years without it happening? it was SUPPOSED to be armaggedon when the 10-year went above 3.0%……..which is where we are RIGHT NOW….TIC TOC! hope you been preppin’ yer asses off!….speakin’ o’ which….peanut butter 99c a jar at food-4-less in so cal right now….what a gift. it’s my favorite prepper food, and you very seldom see it anywhere near that price. packed with calories, and no heating required…..meanwhile, PARTY LIKE IT’S 1940!
Only thing is peanut butter has a relatively short shelf life…
The dollar is backed by the “full faith and credit of the U.S. Government”. Enough said!!
And the muscle of the US military. “Nice country you have here”. “Wouldn’t want to see anything happen to it”. This pretty much describes US foreign policy. You would think that a cast member from the Sopranos was the US Ambassador.
maybe you should shop around a little, brian….
I just hope we can get all the troops and expensive hardware home before the whole thing goes belly-up.
Could you imagine if we had a dollar collapse and no viable currency with which to bring our troops home from all these foreign bases?
Think about it. As of 2018, there were 200,000 thousand active troops overseas in 177 countries.
Might makes right. If we go broke we will bring our troops and equipment home under a nuclear umbrella. Any major player who interferes gets nuked or chem/bio attacked.
I have a particular interest in interest.
The government purposely causes inflation
and under states the cost of living so inflation
is really more than what is paid in interest
on savings. Savings are really what
Government debt is, somebody’s savings
for the future.
Inflation also allows the government to pay
its debts in increasing less valuable dollars.
It also allows governments to raise taxes.
That is why we call our dollar fake money,
because rather than let the rather Heartless
market set values, Democrats arbitrarily set
the values, to keep them in power and give them
the appearance of wealth.
US Money hocus pocus dying on the vine. Default in the form of hyperinflation is inevitable.
It’s not US Money, it’s the Federal Reserves money, and it’s time we paid them off with US Money.
We either repudiate the debt and stand up to the globalist cabal of bankers, or abandon our sovereignty. Hillary was bought off, Trump was elected because he won’t be, thank God.
What? Trump cannot undue 75 years of money printing via the Exchange Stabilization Fund that was used to finance the black budget, fraud, and outright theft of the nation’s inheritance. Trillions are missing.
Holding down the interest rates on people’s savings is price control and it has gone on forever. Then to tax the interest earned is ludicrous. Also, the money’s real value declines because of inflation which is grossly underrated due to the “new” way the CPI is calculated. Then some idiots berate the American public for their low rate of saving!!! When did we fall down the rabbit hole into Wonderland?
When did we fall down the rabbi hole into Wonderland?
We may get some frictional unemployment and increases in prices, yet, as the global market makes domestic production more attractive, jobs will return, and people will get by if unmolested by their government.
We’re better off in the long term by being more self sufficient as a nation.
The American consumer will have to accept the fact their goods and services are no longer subsidized by slave labor and illegal immigration.
Someone explain to me how all of these illegal foreign wars benefit the American taxpayer?
So, let me get this straight. Jewish bankers get more money than our soldiers who fight and die for Jewish wars of global domination to extract even more money for Jewish bankers.
It appears America is being DOUBLE JEW’D!
Then confiscate the assets of the Federal Reserve and all its owners to pay for this fraud. We don’t owe the money, the UNITED STATES OF AMERICA CORP does. WTFU